http://www.zerohedge.com/news/2016-02-08/gundlach-bonds-wont-bottom-until-panic-sends-vix-above-40-credit-fund-bankruptcies-a
More troubling for the bulls who are unable to get the much needed close of trading panic flush as a result of daily last hour levitations is Gundlach's call that the VIX needs to surge above 40 before a bottom can be made in the high-yield junk bond market. Today the VIX closed up 11% to 26.00, a long way off from the panic and revulsion that would send it north of 40. Indeed, the last time the VIX rose above that level was on August 24, when the VIX calculation actually was broken for a brief period of time to avoid crushing countless VIX-linked investors.
Gundlach also writes that "this is not a trader's market" and instead "it is a freight train that you want to stay in sync with. There's too much order and belief in markets in spite of big losses."
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